AIB Mortgage and CAT Tax for husband?

[appleeyes]

After 2 long years I have sold a house I bought before I was married. (52 neg equity)

Just sale agreed yesterday on new house for 380. Have mortgage sanction from AIB for 310 (including the 52 neg) (so really 258 towards new house).

My parents are gifting us approx 130. This is where I am confused. I think I understand roughly how CAT works. Solicitor has suggested some 60/40 joint tenancy or something. My questions are:

1. Can I just say the entire gift is for me (not my husband) and therefore he has no CAT?
2. Will the bank have issue mortgage end of things if we start messing around like this?
3. Are you allowed pay off the CAT gradually over a few years from your wages?

Thanks for any help you can offer!

 

[Brendan Burgess]

1. Can I just say the entire gift is for me (not my husband) and therefore he has no CAT?

I don't see why not. Your parents can give you a gift now which would be tax-free if it's under the threshold. I don't think that has anything to do with your husband.

Brendan

 

[appleeyes]

Thanks Brendan. The 130 is covering everything, deposits, fees etc. I am worried the bank would have issue with his end of it if he has no deposit etc if you get me? Any idea why solicitor suggested that the title be registered as joint names as tenants in common 60/40? It's also complicated by the negative equity. 52 of what they are giving me is covering that.

 

[Brendan Burgess]

You are getting a gift of €130k.
You pay off the shortfall of €52k
This leaves you with around €80k cash.
You are buying a house for €390 (380k + 10k costs)
You will be borrowing €310k

The bank will be delighted with this. To go from an unsecured loan to a highly profitable secured loan at 80% Loan to Value?

I think you should share your ownership as follows:

If you split up, then you know where you stand.

Brendan